What is considered a 'Competitive Business' to a Bor Restoration franchise?
Bor_Restoration Franchise · 2024 FDDAnswer from 2024 FDD Document
15.1 In-Term Covenant Not to Compete
- a. You and we share a common interest in avoiding situations where persons or companies who are or have been franchisees within the System operate or otherwise become involved with a Competing Business either during the Term or after a Transfer, expiration, or earlier termination of this Franchise Agreement. Similarly, you and we want to protect our Proprietary Information, trade secrets, and similar information from misuse or in a Competitive Business.
- b. Therefore, during the Initial Term, and for any Successor Franchise Term, you agree that you will refrain in any capacity or at any location from owning, operating, leasing, franchising, conducting, consulting with, engaging in, having any interest in, assisting any Person engaged in, or acting as an employee, consultant, partner, officer, director or shareholder for any other Person engaged in a wholesale, retail, or other business that is a Competitive Business, except with our prior written consent which consent may be granted or withheld for any reason or no reason.
15.2 Post-Term Covenant Not to Compete
Upon the Transfer, expiration, or earlier termination of this Franchise Agreement for any reason and a period of 36 full months after that, you agree that you will refrain in any capacity or at any location from owning, operating, leasing, franchising, conducting, consulting with, engaging in, having any interest in; assisting any Person for its own account, or acting as an employee, consultant, partner, officer, director or shareholder for any other Person engaged in any wholesale, retail, or other business that is a Competitive Business within, (i) your Exclusive Territory or the territory of another franchisee, company-owned or
Source: Item 23 — Receipts (FDD pages 40–202)
What This Means (2024 FDD)
According to Bor Restoration's 2024 Franchise Disclosure Document, both during the franchise term and for a period of 36 months after the agreement's transfer, expiration, or termination, franchisees are restricted from involvement with a 'Competitive Business.' This includes owning, operating, leasing, franchising, conducting, consulting with, engaging in, having any interest in, assisting any person engaged in, or acting as an employee, consultant, partner, officer, director, or shareholder for any other person engaged in a wholesale, retail, or other business that is a 'Competitive Business'.
During the Initial Term and any Successor Franchise Term, franchisees agree to refrain from any involvement with a 'Competing Business' in any capacity or location. This restriction applies unless Bor Restoration provides prior written consent, which they may grant or withhold for any reason.
After the franchise agreement concludes, the franchisee is restricted for 36 months from similar activities within their Exclusive Territory or the territory of another franchisee, company-owned, or otherwise controlled location. This post-term covenant aims to protect Bor Restoration's proprietary information and market position.